Investment Policy & Fees
General Philosophy
The Central Susquehanna Community Foundation is a not-for-profit
501(C)(3) organization duly created and existing under
the
laws of the Commonwealth of Pennsylvania. The Foundation's Board of
Directors has delegated to the Finance Committee the authority to determine
investment objectives, policy and guidelines for the investment managers of
the Foundation's investment fund.
It is the intent of the Foundation to see that all Fund assets are invested
with all the care, skill, and diligence that a prudent person acting in their
capacity would employ, and according to all rules, regulations, and laws currently
in force governing the investment of such assets.
The Finance Committee recognizes that community foundations are an increasingly
important source of funds for both current operations and future capital expenditures
when required. It also sees the necessity for the principal to grow through
both its own investment return and new contributions in order to maintain
the purchasing power of future income.
The long-term stated investment objective is to maximize investment return
with the least amount of risk through a combination of capital appreciation
and income. Risk should be decreased through diversified investment in equities,
fixed income, cash and other Finance-Committee approved instruments. Diversification
will be required within investment groups by industry and individual company.
Though it is the intent of the trustees to achieve a long term above average
return, that intent does not include taking extraordinary risks or engaging
in investment practices not commonly considered prudent.
Performance Expectations
The desired investment objective is a long-term rate of return on assets that is at least 7.5%, which is 3.5% greater than the anticipated rate of inflation as measured by the Consumer Price Index (CPI).
Asset Classes
Rebalancing of Strategic Allocation
The percentage allocation to each asset class may vary as much as plus or minus 5% depending upon market conditions.
Custom Benchmarks (excludes cash equivalents):
Russell 1000 Value, S&P 500, Russell 1000 Growth, Russell 2000 Value, Russell 2000 Growth, MSCI EAFE, Lehman Brothers Govt/Credit Intermediate, Lehman Brothers Aggregate
Investment Fees; Spending Policy
For endowed funds, the Foundation's spending policy is 5.5% annually of the fund balance. This includes a 1% annual investment fee and 4.5% designated for grants.
Full Investment Policy Available Upon Request
To view the Foundation's complete investment policy, please call the Foundation office at 570-752-3930 and request a copy. If you would like a copy of the Foundation's most recent audit, please call the office at (570)752-3930.